The crypto market is going through a massive downtrend. Specifically, over the past seven days, the crypto outflows have reached the staggering $454M mark. As per the data from CoinMarketCap, this denotes one of the biggest weekly extractions over the past month. Particularly, the crypto asset getting the major hit in this respect is Bitcoin ($BTC).
Bitcoin ($BTC) Products Lose $405M as Rate Cut Hopes Fade
Out of the total $454M leaving the crypto sector over the past week, Bitcoin-centered products accounted for a huge $405M. The respective trend highlights the rising concerns among investors as they are losing hope in the likelihood of Fed rate cuts in March 2026. Keeping this in view, several investors have reportedly decreased their digital asset exposure.
As a result of this, the professional and institutional investors have become relatively defensive, shifting from the previous anticipation of a relatively accommodative policy setting. Beyond Bitcoin ($BTC), several other digital assets also saw net outflows at a relatively smaller level. Thus, the outflow concentration in Bitcoin ($BTC) signifies adjustment of positions by investors in the top crypto asset.
Criminal Investigation Against Fed Chair Further Fuels Market Uncertainty
Apart from that, the criminal probe against Jerome Powell, the U.S.Fed chair, is also raising concerns among the market participants. The criminal investigation looks into the expenditure of the renovation of the Fed headquarters and the truthfulness of Powell’s statements about it. While denouncing the investigation, Powell has categorized this move as an unprecedented act that potentially attempts to undermine the Fed.
According to CoinMarketCap, irrespective of the recent outflows, there is a possibility for a market shift as witnessed in the former cycles. Even then, the fading rate cut expectations have played a critical role in the ongoing crypto downturn. Until wider clarity emerges, crypto volatility could likely persist, with Bitcoin ($BTC) to keep serving as a key indicator of the overall market sentiment.
